Good morning, and welcome to the earnings call for the Q4 for Upsales. My name is Daniel Wikberg. I'm the CEO and Founder of Upsales, and I will be doing this presentation today. So if you wish to ask a question, you can do so throughout the presentation by using the Q&A button located in the toolbar in your Zoom window. And I will answer all questions after the presentation in the Q&A section. So I will start to talk a little bit about Upsales. I will do a short company presentation for those of you listening who are not familiar with the company. Then I will do a specific update from the Q4 regarding the growth and what we're doing on the product side.
We will end with some financial highlights from the last quarter. All right, so at Upsales, our mission is to build the best AI agents to help CEOs and sales leaders create revenue growth. We are a software as a service company. We've been in business since 2003. We have a long track record of profitable organic growth. Our ARR is currently SEK 153 million. We have a very scalable business model with 95% recurring revenue. We have zero debt on the balance sheet, so we're a net cash company. Company is 45% management-owned, and trailing 12 months, we have a 25% EBITDA margin. So that's a short introduction to Upsales.
We are right now in a strategic pivot that we have been working on tirelessly for the last 2 years. Our history is we have been delivering sales and marketing tools, so CRM software and marketing automation software, since 2003. When the AI boom started a couple of years ago, we realized that this is very important. It's a crucial thing for any software company, and we believe that specifically in sales, there are a lot of very valuable use cases where you can use AI to solve a lot of problems that were very difficult to solve in the past.
So, our way of addressing this and what we are doing, so our internal mantra is: AI is not a feature. So what I see, I see a lot of companies having delivered software for years or decades, and you address AI like adding a small feature here and there. So we have a different approach. We believe that we need to reinvent the entire product and the entire way of how our customers will be using the product in the future. And I think we are very well positioned to capitalize on this and solve important problems for our clients.
Specifically because we have a, we have a long history of delivering a lot of valuable data to clients, together with the software. So if you are familiar at all with these kind of products, you know that if you've seen any CRM implementation or a CRM software in a company, they are typically filled with poor data. So you don't really get the value you were looking for as a customer when you bought the product. So we have been focusing a lot on trying to solve that issue for more than 10 years by including B2B data, company data, financial data with the product, which reduces the need for manual data entry.
And this enable us to create these AI agents and AI use cases a lot more easy than what would have been the case if we didn't have access to all that data. So that's a short introduction. I'm going to talk a little bit about growth and what I see in the market. So in the last quarter, we saw the largest ARR increase in a single quarter in three years. So we were very happy with that. So the trend of accelerating growth, which we have seen now for six or seven quarters in a row, continues, which is very, very positive to see.
We also started focusing a little bit more than we have been doing in the past in investing in our services team because we saw an increasing demand from especially larger clients that they have a strong need for for expertise and assistance when it comes to implementing AI and and and getting value out of out of the software. And we already see that is also contributing to to revenue in a meaningful way in Q4. Looking at the market, so I the last three years, I've I've often get the question, "How are you affected by by macro and and and the general market conditions?" So I think Upsales is in a very good place since we are we are we are profitable.
We have always been profitable, so we have a model, we have a culture of doing things effectively. We have no debt, so we are not affected, at least not directly, by increasing interest rates and the general macro environment. We actually see churn rates going down. This is a trend we have seen now for quite some time. So when I look at the data we have, we have not yet seen any clear negative macro impact on Upsales. And on the other side, we see a strong, very strong demand from both new and existing clients on AI-related services. Building agents, using agents, and just finding ways of growing faster and get value from AI.
I think we're very, very well positioned to capitalize on this. The third item I want to mention is the general sentiment from European companies to U.S. software providers. So pretty much all of our competition comes from the U.S., and we continue to see. We have seen for some time now, we continue to see an increasing trend in when talking to customers that it, it's not as clear and as obvious as it was a few years ago, that of course, you buy American software. So I think that could be something very positive for companies like Upsales. And in the last few weeks, there's been a lot of talk about AI and vibe coding, and then the people are talking about SaaSmageddon, that all software companies will die and disappear.
My view is quite different. So what we're seeing is that it's easier to build prototypes that goes extremely fast. But getting a prototype to a production-ready system that works every day, in and out, for more than 1,000 users, that's something completely different, and that doesn't get so much easier with the use of AI. I think another point is that the obstacle of building a software business in the past was not that coding was too expensive or coding was too complicated. That's a small part of the problem. The problem is to reach a lot of clients, understand them, get their needs, and do these hundreds and thousands of iterations to get to product-market fit. So I think it's a little bit exaggerated.
And on the other end, I see that AI is driving demand. So I think AI is the catalyst for digitalization in general. And what I see when I, when I'm out there, I'm still out there talking to customers on a regular basis, I still see that the vast majority of digitalization is still undone, so it's still yet to be implemented in all categories. And I think AI is a driver to a lot of companies to kind of realize that, "Okay, we need to start working in smarter ways." So I think this is the biggest opportunity I have seen since I started the business almost 25 years ago.
I will talk a little bit about the product, what we're doing on the product side. So, as you might have seen, we sent a press release in December, where we reorganized our product team. So we phased out around 14 positions, and we didn't do this because of cost- cutting, or we want higher margins or anything like that. We still have a very ambitious roadmap, and ambitious plans of investing in the product. We are still hiring, but what we're seeing is that when you're working with these new tools powered by AI, you need a different kind of profile.
So the typical niche engineer or the typical niche designer or project manager, those roles are starting to disappear. Y ou're seeing more broad roles emerge, and those are the kind of people we are hiring to the team. What we are doing, I talked a little bit about this, we are building a model, an AI model, based on all the data we have been using for more than a decade now. We're building a model that enables clients to better understand existing customers and also find new opportunities. There's a lot of talk about agents.
A while back, we launched the Upsales Agent Platform, which customers are already using very enthusiastically to build agents that automates what used to be done by humans. A few examples, we have several sales agents that do research before client appointments. It records appointments and makes notes and takes actions and stuff like that. It can also reduce a lot of the administrative work that is part of a sales role, such as writing proposals and presentations and all the material and communication you have with your existing and potential clients.
We also see a lot of use cases in finance, and since we have a history of building a lot of integrations, that's maybe the most appreciated part of the platform, is the ease of integrating to your ERP or accounting system. So we already have a lot of clients, hundreds of clients, who are integrating Upsales with their financial software. And that enables us now with AI to reduce a lot of the manual work that's being done in a typical finance team. So we are seeing a lot of use cases there, which is very exciting. And the platform also enables our customers to build their own agents, which can be in any category.
As you know, the pace of development is very high. So you can already do this without being a coder or without writing a single line of code. And it's just very exciting to see what customers are already doing with this platform. All right, so some short highlights from the last quarter on the financial side. So we ended at an ARR at SEK 153 million. ARR changed by SEK 5.3 million during the quarter, quarter-over-quarter. Year-on-year growth was 7.8%. Net sales was SEK 40.4 million, so we are back in double-digit revenue growth, which is very exciting to see.
The subscription revenue was still very high, 93% of total revenue in the quarter. Looking at profitability, we almost doubled our EBITDA year-on-year to SEK 10.4 million. We had an EBIT of SEK 7.4 million and SEK 5.8 million in net income. Finally, looking at cash flow, so operating cash flow was SEK 21.9 million, compared to SEK 20.8 million last year. Net cash was SEK 37 million, and the board is proposing a dividend of SEK 0.75 .
So we have invested more in the product, but we are proud, and I am proud of the fact that we are able to accelerate growth, invest in the product, run a profitable business, and still pay a dividend. So that was it. Let's continue to the Q&A. So again, you can use the Q&A button in your Zoom toolbar. So let's see. The first question comes from Frederick regarding the number of employees. Yes, if you look at the number of employees in the quarterly report, you see the decline was by two quarter-over-quarter.
That is because the majority of the people who is leaving the company had their notice in December, so their contract expires in Q1. That's why you don't see it yet in the data. The next question is about the B2B data. What kind of data is that, and is it publicly available data? The answer is no, it's not publicly available data, and I think this is one of the edges we have. A lot of AI use cases is based on scraped data. You go on the internet, and you find publicly available data, which is usually not good enough to run these agents in production. We have several contracts with several different providers.
So we buy financial data, we buy news data, we buy all kinds of data from different providers. All right, I will give it a few more moments. Again, just use the Q&A button or raise your hand if you wish to ask a question. Okay, we have a question about, we have been promoting on LinkedIn a new product called Aira, the question is: What is the purpose of this, and what are the goals? So Aira is an innovation project. It's a mobile app. So it's basically a mobile app, a sales agent, which will be connected, it will be integrated with Upsales. But it's one of the many innovation projects we are running.
So the reason I haven't talked about that in my quarterly report is because it's very early stage and it's zero revenue, so it's an innovation project. Okay, next question: You were phasing out 14 roles. What 14 roles are you recruiting to replace this? So no, we are not recruiting 14 new roles to replace the 14 who left. That's not at all what we're seeing. So of course, we are seeing a significantly higher productivity in our engineering team, and that's one of the drivers why we are reducing the team. So when building the team going forward, it's more about finding very specific people that can have a very broad responsibility.
So next question is: What's the main driver behind the large increase in ARR compared to earlier in 2025? So I think, what has been most successful in the last 12-18 months has been the new sales team, which is part of a strategy shift we did around two years ago to focus on other kind of work verticals and increasing deal sizes. So we're really seeing that strategy paying off. So new sales is contributing very successfully. Churn has continued to go down.
And we see, I mentioned this in previous report, the biggest opportunity still, I think, lies within the existing customer base, because we're seeing a big demand there from existing clients to start using these AI agents.